Lawrence Lumber Company Inc. - Miller Publishing Corporation
Lawrence Lumber Company Inc. - Miller Publishing Corporation
Lawrence Lumber Company Inc. - Miller Publishing Corporation
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December 2012/January 2013 Page 21<br />
FORECASTS - Herga<br />
Continued from page 4<br />
ness mode.<br />
Our major imported hardwood products<br />
rough sawn are Sapele/African<br />
Mahogany/Utile/Jatoba/Aniegre and<br />
FSC certified hardwood decking. These<br />
species have sold well for us. We specialize<br />
in importing 100% FSC certified<br />
hardwoods from our own sawmills in the<br />
Congo basin. We are importing into the<br />
USA and Canada. We are importing<br />
from West Africa (Congo basin) Ghana,<br />
Ivory Coast and most South American<br />
countries.<br />
Shipping issues are now an everyday<br />
occurrence. Problems vary from container<br />
inspections, demurrage to freight<br />
rates, bunker surcharges and availability<br />
of containers or lack of breakbulk<br />
service.<br />
Olam Wood Products through the Olam<br />
group owns its own sawmills in West<br />
Africa that are mainly FSC certified. With<br />
the uncertainty of some supply sources,<br />
we feel that certification and responsible<br />
forest management is the only path to<br />
future success in this business.<br />
•<br />
FORECASTS - McMaster<br />
Continued from page 4<br />
as a Challenging Global Supply causing<br />
more time and efforts to find quality and<br />
consistent suppliers.<br />
Argo Fine Imports specializes in importing<br />
hardwood plywood products from<br />
Indonesia, China, Africa, Brazil and<br />
Ecuador. Our products range from<br />
2.7mm to 28mm for various applications<br />
throughout our country delivering to<br />
wholesale distribution, OEM manufacturers<br />
and retail.<br />
Argo has continued with our model and<br />
(inventory) stock is based on market and<br />
programs in place.<br />
Shipping continues to be a challenge<br />
based on volume availability depending<br />
on shipping methods. <strong>Inc</strong>reased container<br />
rates have been a problem for<br />
most of 2012.<br />
Argo now offers all products that meet<br />
Carb Phase 2 requirements as long as<br />
they are FSC certified materials.<br />
Florcore Underlayment is a domestic<br />
green product that Argo has developed<br />
to diversify in these challenging times.<br />
•<br />
FORECASTS - Carlsson<br />
Continued from page 4<br />
Oak and Black Walnut. We expect 2012<br />
sales to meet or exceed 2011 and 2010,<br />
although every day is a new challenge,<br />
and we are taking nothing for granted for<br />
the balance of the year or for 2013.<br />
The sawmills that we do business with<br />
continue the challenge of purchasing<br />
White Oak logs at prices that make business<br />
sense. The mills compete with<br />
export log buyers (who are not just purchasing<br />
veneer logs - but also saw logs)<br />
and stave mills. I am writing this in early<br />
November, 2012, and many mills have<br />
low log and green/air drying inventory,<br />
which will affect the availability for the<br />
balance of 2012 and for the 1st quarter<br />
of 2013.<br />
Since the global economic recession,<br />
we have had to switch our focus and<br />
attention from Spain, Italy and other<br />
European markets to the Southeast Asia<br />
and China markets.<br />
In 2012, we increased our sales dramatically<br />
into Southeast Asia with some<br />
sales into China, and project this will<br />
continue 2013 onwards. Price vs. quality<br />
continues to be the ongoing battle in<br />
these markets.<br />
The challenges continue month-tomonth<br />
to keep updated on the intermodal<br />
ocean freight rates which seem to<br />
go up much, much faster than down. 40-<br />
foot container availabilities for reasonable<br />
rates is also an issue. We are<br />
sometimes forced to use higher ocean<br />
freight rates just to get equipment. It is a<br />
moving target.<br />
I guess if exporting was easy, everyone<br />
would be doing it.<br />
We are in a global economy in challenging<br />
times, but I expect that exporting<br />
of North American hardwoods will continue<br />
to increase in 2013. The prices of<br />
the species will be subject to supply and<br />
demand. I believe that many overseas<br />
buyers do not have much on the ground<br />
inventory, so they will continue utilizing<br />
the ʻjust in timeʼ purchasing policy.<br />
To summarize everyone needs to keep<br />
a careful eye on the ball, and stay very<br />
focused. Be careful. It is a jungle out<br />
there.<br />
FORECASTS - Burnett<br />
Continued from page 4<br />
improved prices and steady enquiries.<br />
The market has been up and down all<br />
year so we canʼt say that 2012 has been<br />
better for us than 2011.<br />
Challenges I see in 2013 include log<br />
decks remaining low and production low<br />
in the major species needed as demand<br />
begins to be steady.<br />
We export all species of domestic hardwoods<br />
and Poplar, White Oak and<br />
Basswood have been very steady.<br />
We primarily export to the UK, Ireland,<br />
Spain, Germany, China, Vietnam,<br />
Thailand, Indonesia and Malaysia. Our<br />
inventories are limited in the items needed<br />
due to lack of production.<br />
The issues with shipping we experience<br />
result from fluctuations in ocean freight<br />
rates, high inland freight rates due to<br />
fuel surcharges and potential uncertainty<br />
about the potential Longshoremanʼs<br />
strike.<br />
•<br />
Dan Lennon<br />
Robinson<br />
<strong>Lumber</strong><br />
New Orleans,<br />
La.<br />
Our forecast is for<br />
moderate growth<br />
based on stable<br />
exotic lumber<br />
prices, a substantial,<br />
well balanced<br />
inventory, as well<br />
as confidence<br />
about increasing activity in the home<br />
renovation market.<br />
The import market in 2012 was very<br />
similar to 2011. We had challenges with<br />
maintaining appropriate inventory levels<br />
due to both unpredictability of demand<br />
and extremely long transit times for most<br />
of our best selling imported lumber<br />
species.<br />
Freight costs continue to be a major<br />
challenge, both ocean freight and inland<br />
freight from our warehouses to our customers.<br />
We import rough lumber and solid<br />
hardwood flooring as well as some Ipe<br />
decking, Jatoba lumber and flooring.<br />
We export domestically produced hardwood<br />
and softwood lumber to several<br />
dozen countries in Europe, Asia and the<br />
Caribbean.<br />
We are buying more aggressively for<br />
inventory in 2013 after having cut back<br />
each of last four years.<br />
Our biggest problem is increasingly frequent<br />
U.S. Customs and USDA intensive<br />
inspections on containers of imported<br />
wood products. You get charged by<br />
Customs or USDA for drayage to a<br />
warehouse of their choice, the inspection<br />
itself, handling and storage plus<br />
demurrage during time of inspection<br />
charged by the shipping line. They take<br />
your packages apart and you have to<br />
pay someone to recoup them. We even<br />
had one case where we had to pay over<br />
$2,000 to have some mud rinsed off the<br />
outside of the container. It was handled<br />
as hazardous waste.<br />
We continue to strive to provide any<br />
service our customers require. We ship<br />
flooring samples to endusers for our<br />
customers every day. We ship job lot<br />
quantities when needed and handle all<br />
LTL arrangements. We are providing<br />
services such as width sorting hardwood<br />
lumber as well as customizing length tallies<br />
to best suit our manufacturer customers.<br />
•<br />
Continued on page 22